North Carolina Down Payment Support Programs
Online Merchant account - The North Carolina Housing Finance Agency got two excellent plans for First Time Home Buyers. These systems are the Down Payment Assistance Program and the Mortgage Credit Certificate.
Should you meet the requirements for one of those programs and you buy a house between December 1, 2009 and January 1, 2009, you might also qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.
First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a house in the prior three years. Here is the exact same qualifying definition.
What's a Mortgage Credit Certificate and Who Qualifies?
A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with low and average incomes. All home owners can claim an itemized deduction. The MCC takes this a step farther. An MCC “reduces your tax liability according to a portion of the mortgage interest which you pay.
If you qualify for the MCC, it is possible to claim 20% of the interest you pay as a credit on your federal income taxes on your own mortgage. It's possible for you to save up to $2,000 on your taxes.
Should you qualify for the MCC, for 2009, you'll be able to join this. This might reduce a buyer's tax liability .
Who Qualifies for an MCC?
Who qualifies for an MCC is based in your income and the cost of the home you are buying. Household income means the “gross income of the mortgagor and every other individual anticipated to reside in the dwelling who is 18 years old or older.”
House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.
MCC Income Limitations 1 Individual $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500
MCC Sales Cost Limitations New Dwelling $220,000 Existing Home $210,000
Who Qualifies for Down Payment Assistance?
Home buyers that need help with their deposit and closing prices might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer only has to pay $1,000 of their own funds and the load would pay around .
This program has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it could be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nevertheless, cannot be applied together together with the MCC. It is an either or situation.
House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.
Down Payment Assistance Income Limits
1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Individuals $57,050
Down Payment Support Sales Price Limits New House $210,000 Existing Residence $210,000